When will the Aurora Cannabis stock shoot up like Tilray and Canopy?
Aurora Cannabis stock has had some movement up and down, but ever since it fell below $10 CAD, it never came back to its former glory.
Aurora Cannabis is aiming to become a global superpower when it comes to cannabis, which is more than evident in their consistent efforts to improve their standing on the global ladder.
To be honest, it would seem that Aurora Cannabis is more worried about their international prospects than the domestic ones, especially with recreational legalization coming to Canada in 33 days.
On the other hand, its fiercest competitors — Canopy Growth and Tilray, are doing better than anyone could have assumed that they would.
These two companies have recently applied for and been granted a spot on two of the United States stock exchanges. Canopy Growth is now also trading on NYSE, while Tilray is trading on NASDAQ.
Both of the companies stocks have had unreal success in the last couple of weeks, as they grew continuously, and some would say even effortlessly.
Canopy Growth went from trading at around $25 CAD to trading at just under $70 yesterday but dropped overnight to $57 due to some border issues which the US federal government announced.
However, this is just a minor hick-up for Canopy as some analysts are now assuming that they will hit $100 CAD by the end of this year.
Tilray has had the same astronomic success as Canopy with their application to a US stock exchange, only their stock kept going up this morning as well, seemingly unfazed by the announcement.
The reason for such behavior is that Tilray just got its regulatory permits to export medical cannabis flower to Germany, making it the only company shipping both oils and flower to the German market.
Their stock has risen by around 10% since and is currently trading at a whopping $120 USD, the highest amount for any Canadian stock so far.
When will Aurora’s stock reach these numbers?
Nobody can say for sure, but there has to be something going on behind the scenes with Aurora.
From what I’ve gathered, their flowers and oils are relatively decent and they always deliver a consistent product. That says a lot about a producer.
On the business side of things, Aurora Cannabis has been making nothing but good decisions. They acquired two of the best producers they could have, at the best possible time.
However, it is important to note that these acquisitions have been structured as mostly stock-deals, meaning that the shareholders of CanniMed and MedReleaf are holding a lot of Aurora Stock.
In fact, MedReleaf shareholders received 3.575 Aurora shares for each MedReleaf share they owned, giving the combined entity more than 900 million shares outstanding.
Aurora is now projected to have a market cap of over $7.5 billion CAD, behind Canopy Growth ($13.5 billion CAD) and Tilray ($11.5 billion CAD).
It is my assumption that they will play a much larger role in the global cannabis trade than their competitors, as the number of overseas deals Aurora made trumps their competitors by far.
As for their stock, it is very likely that Aurora will take much longer to rise to the numbers at which Canopy and Tilray are trading right now, but it is definitely going to happen once these overseas deals start making a difference.
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